A two-phase flow model using the boundary element method was applied to investigate the physics of a liquid drop impacting onto a solid, dry plate. Xu et al. showed that air pressure plays an important role in splashing: as air pressure was reduced, splashing of an ethanol drop with a Weber number of 838 was suppressed. This remarkable observation provided the motivation for the current modeling effort. We numerically investigate how air pressure affects the behavior of an impacting drop. Surveying both inside and outside the impacting drop, velocities of both the liquid and gas are computed. Simulations show that gas speed, as it is displaced by the falling drop, is more than three times higher than the incoming drop speed. Air entrainment induced by the displaced gas seems to be an important contributor to corona formation, which always precedes any instability, fingering, or splashing of the liquid. To describe drop-impact phenomena, the maximum spreading diameter of the drop and the topology of the impacting fluid are reported as functions of Weber number and gas density. (C) 2010 Elsevier Ltd. All rights reserved.